3 Project Management Tips for Supply Chain Projects

I used to think the software projects I worked on at Amazon and Netflix were complex.

But after consulting on supply chain projects, I think that supply chain initiatives are even more difficult to complete than software projects.

They involve:

• a larger number of stakeholders, both internally and externally

• longer timelines and large capital investments

• more human elements to them, such as training, onboarding, and change management

So I took a course on supply chain project management last weekend to learn how to navigate these complexities.

Today, I will share my top 3 insights from the course including:

• How to use flow charts to communicate processes and stakeholder responsibilities

• How to apply Agile and Waterfall methodologies to supply chain projects

• A framework called DIRECT to help you structure supply chain projects

How to Use Flow Charts to Visualize Processes

Part of what makes supply chain projects challenging is the large number of stakeholders and lengthy processes involved.

So in supply chain projects, it’s necessary to map out the entire process and stakeholders before we can begin to improve it.

I discovered a technique for visualizing both stakeholders and processes in a flow diagram that can help everyone understand what’s going on. 

Creating one of these diagrams helps us visualize:

• Who all the stakeholders are

• What each stakeholder is responsible for

• The sequence of steps

• All the actions that need to take place

In a concise format. Here are the steps to creating one:

1. List out all the key steps and decisions in a process

2. Order them sequentially and connect the transitions with arrows

3. Mark all actions as boxes

4. Mark all decisions as diamonds

5. Mark the beginning and end as circles

6. Move each component of this diagram into each stakeholder’s own “swimlane”

And you’re done! 

For example, if we had to map out the entire process for receiving a shipment at a warehouse, a sample process could look like this:

1. A truck arrives

2. Security notifies the dock manager

3. The dock manager decides if the truck may dock or not

4. If yes, the truck then unloads at an assigned dock

5. They unload their truck

6. The shipment is moved into the warehouse

7. The truck leaves

Then we would order it sequentially and connect the transitions with arrows like this.

We would then assign the right shapes to each step of the process.

For example, deciding to permit the truck to unload is a decision so it gets a diamond.

The truck entering and leaving is the first and last steps so it gets a circle.

And everything else is an action as designated by the box.

Lastly, we would create “swimlanes” for each stakeholder which includes:

• the dock manager

• security

• the truck driver

• warehouse associates

And move each step into one of these swimlanes so we know who the key stakeholder is for each step.

With this diagram, we can quickly see all the stakeholders and steps involved in receiving shipments for a warehouse, which is an important first step to any process optimization.

Takeaway

Consider drawing a cross-functional flow diagram before beginning any supply chain process improvements, as they are a great way to visualize a process and communicate what needs to be done across all stakeholders.

Applying Agile and Waterfall Methodologies to Supply Chain Projects

The second thing I learned from this course involved the three main ways to organize a supply chain project. They involve either using Waterfall, Agile, or a hybrid of both approaches.

Waterfall Methodology

Waterfall methodology involves breaking a project into sequential phases. When we complete one phase, we move onto the next.

This is best used for projects where things can not be done in parallelized fashion, and when requirements and end deliverables are clear.

For example, consider this project description for outfitting a new distribution center below.

Notice how in Phase One of this project, they have to first do an assessment of this project which involves:

1. Pre-work

2. Onsite visit

3. Post-site summary and implementation plan

Since these three components have to be done in this exact order, a waterfall methodology will make the most sense for the first phase.

Agile Methodology

Agile methodology is more flexible than Waterfall in that it emphasizes iterative, frequent deliverables in uncertain environments. 

With Agile, you’re organized according to sprints, which are usually two-week phases. At the end of each sprint, you have a clear outcome delivered.

For example, if you’re making changes to your WMS (warehouse management system) to add multiple integrations, each separate integration could be part of a “sprint” that your engineering team focuses on.

So by the end of the sprint, all of the integrations are complete. 

For a scenario like this, the integrations are also independent from each other, and so don’t need to be done in sequential order.

This indicates that Agile may make more sense here than a Waterfall methodology.

Hybrid Approaches

Lastly, a supply chain project can involve multiple smaller projects, in which case some sub-projects may use a Waterfall methodology, whereas other parts may need Agile methodologies.

What I like to do personally is treat the high-level timelines as Waterfall, because most supply chain projects have distinct steps. And use Agile “sprints” to ensure we make progress week to week.

In the St. Louis warehouse improvement project above, we could consider both Phase 1: Assessment and Phase 2: Implementation two distinct steps that are sequential, and use Waterfall as the overall framework.

But within each phase, we could use Agile so that we have clear progress and deliverables in these multi-month Waterfall phases.

For example, we could have a sprint where we the final deliverable is a technology plan, implementation plan, and procurement plan after we visit the site.

Each of these represent different user “stories” that we try to complete in a “sprint”.

Below is a visualization of this hybrid approach.

Takeaways

1. If there are projects where things must happen in sequential order, consider using Waterfall methodology.

2. When project deliverables are uncertain and tasks can be parallelized, consider using Agile methodologies

3. Don’t forget it’s possible to combine the two for maximal efficiency!

DIRECT Framework for Supply Chain Projects

The last thing I learned was a framework to apply to all supply chain projects that’s called the DIRECT method.

DIRECT stands for:

• D - define the objective

• I - investigate the options

• R - resolve to a course of action

• E - execute the plan

• C - change to the new solution

• T - transition the people

I particularly like this method, because it emphasizes the pre-work (DIR part of DIRECT) that we have to do before we begin implementation.

I’ve seen mistakes happen in both supply chain and software projects where the objectives and alternatives were never explicitly discussed, leading to poor decisions and sometimes completely wrong outcomes delivered.

In one example, I was on a supply chain project where we discussed a particular deliverable that a partner had to execute on. They went straight into E - execution, without having a sync meeting or documenting both the objective of this project and alternatives to solving this problem.

3 weeks later, when we had a sync meeting for them to demo the deliverable, we discovered they built the wrong thing, and it didn’t solve the original problem we had outlined.

Had we been more rigorous with following the DIRECT method, and not skipping the pre-work, we could’ve uncovered that there was a misunderstanding regarding objectives sooner, and avoided the 3 weeks lost.

Takeaway

Consider following all parts of the DIRECT framework for any supply chain project. The pre-work particularly will help avoid misunderstandings and delays.

Final Thoughts

Supply chain projects can be incredibly difficult to execute on due to its complexity. But by:

• drawing flow diagrams

• using both Agile and Waterfall methodologies and

• applying the DIRECT framework to these projects

you’ll avoid costly delays and mistakes and run much smoother supply chain projects.

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